All Forum Posts by: Kevin Perk

I think every city will have areas that are good for flipping and others that are not. You just need to find someone with local knowledge to guide you. Here in and around Memphis there are several areas where a retail flip is possible. Memphis also has great areas for wholesale flipping as well. We can still get a lot of cash flow for the price here.

Does the property management company manage their own properties as well as manage others? If so guess who will get the best tenants first.

Wordpress is a good way to go if you want to build yourself. I would suggest purchasing a template (less than $100) rather than using a free one as they will have more functionality.

Good luck!

Sounds like you are doing great. I lot of people not into real estate don't get how fun and rewarding investing is. If you have a local REIA club nearby, join so you can talk and network with other investors once in a while.

Keep it up.

Nathan,
Is there a local REIA club nearby where other investors could recommend some lenders or possibly give your a referral? If not, keep knocking on doors. Some will say no now but yes later and those that say yes now will say no later. Finding financing can be like shooting at a moving target.
Good luck!

Here in Memphis/Shelby County Tennessee you can file to have a hearing before the Board of Equalization every year. I have had several successful appeals. I am still waiting for hearings for the 2011 filings (I filed in June :/) and will file several more before the 2012 deadline this June. The market downturn had definitely made an appeal worth it to increase your cash flow.

$48k was to much and you are right, she will most likely never recover her principle. Can I check back in a few months to see if your client is still happy? Also, I am curious who she bought the property from. I hear stories about people going around the country talking about how "undervalued" Memphis property is. They get sucked in by the "low" price but do not realize what they are getting into. In the future have your clients contact someone at the Memphis Investors Group for practical Memphis real estate advice. Send me an e-mail please, you can find it under my profile.

Glad I could help

kp1

I do not know what your investing strategy is for the property so I will tell you a couple of different things. I can tell you it is not worth anything near what the Shelby County Property Assessor says it is worth. And I would caution you on buying properties in other parts of the country sight unseen (if you have been here and toured the property than ignore this part). Property in Memphis is not undervalued! It is valued what it is due to the conditions found in our local market.

So, if you are planning to wholesale the property, it would be worth between $8,000 to $12,000. You can look here http://register.shelby.tn.us/ to find the sales records for the property.

If you are planning to retail the property, I will tell you there is no retail market in that part of town.

If you plan to buy and hold as a rental. I need to make some assumptions. I assume you can get about $675 in rent for a 3/1 in that part of town. I also assume you will have a management company manage the property for you charging about 10% of gross rents. In that section of town I would factor in a 15% repair credit and 15% vacancy credit (they will beat the property up and move frequently). I know you said it has been rehabbed, but there is always something more to be done. Factoring in your taxes and insurance I would therefore not pay more than $25,000 if it were in perfect condition, $20,000 would make me more comfortable.

I do not know you or your level of experience but I again caution you on buying property sight unseen. As president of my local REIA, I have witnessed more than one person get into trouble this way. You can make good money in real estate, and good money here in Memphis, just be sure you know what you are getting into.

Happy Investing and Good Luck,

kp1

What is the condition?

Congrats to you!

Skip the property management company for now. You need to learn the ropes yourself. You need to know what it takes in order to be able to properly manage the property management company someday in the future.

Also, you may be able to raise your rents, but you have to ask yourself if the increase will cost you more later in lost rents and rehab costs as your existing tenants move. If this was my first purchase and I had three long term paying tenants, I would not rock the boat too much until I became a little more experienced.

Best of luck to you and start looking for your next deal!